Local Business Should Try Groupon

Tuesday, 11 May 2010 at 4:59 am Pacific USA Time.

Facebook ads kept telling me check out a big local coupon. I wasn't sure what that meant, but I clicked through, and ended up on Groupon.com.

Reminds me of Restaurant.com but combined with viral marketing. Both Restaurant.com and Groupon offer local discounts. For example, I bought a $35 certificate to a local restaurant I've wanted to try. It cost me $15 on Groupon, and that's a huge savings! The same restaurant is on Restaurant.com offering a few certificates… $25 for $10, $50 for $20 (huh?), $75 for $30, and $100 for $40. Wow, that's major savings. I guess if I end up liking that place, I'll buy more certificates at Restaurant.com!

Groupon has two differences:

  1. The offers seem to be time-sensitive. By the time you see the "groupon," there may be hours or minutes left to take advantage.
  2. Groupon wants you to get friends to buy in too. Groupons are only "activated" if a certain number get sold. So for the one I bought, it looked it was activated when 10 people bought in. Well, I bought the 418th $35 certificate.

Smart marketing. Cash flow for the biz. Now I'm thinking about their place. I'll make a plan to go there. I'll bring a friend. Our bill will probably be more than my certificate. And if I like it, now they have a new customer they didn't have before.   

According to the FAQ, Groupon collects the money, keeps an unstated portion, and mails the business a check. I'm thinking this portion must be negotiable or they would just state their rates.

If you have a biz that relies on local traffic, I would give this a try. And let me know how it works! I'm always curious.

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Categories: That's Good Marketing

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One Response to “Local Business Should Try Groupon”

  1. tim says:

    I just bought a bunch of $25 certificates on restaurant.com for $2 each. They are normally $10 but there is a 80% off coupon code “enjoy”. This is available in every city and for many restaurants. The catch is usually evenings only, min 2 entrees, 18% tip on total bill, and must spend at least $35 total. but for $2!!!! Check it out. i will have to try groupon next.